Consigning Your Work
If you've decided to take the plunge and turn your jewelry-making hobby into a business, there are several avenues for selling your work. Hosting Home Jewelry Parties, Traveling Jewelry Parties, and setting up booths at Art or Craft shows are methods of selling, but have you considered selling on consignment? Before you jump in and approach boutiques, hair salons, and other shops, make a plan!
Where should I sell?
Ideally, if you have a friend or relative who has a small shop, that's the best place to start. However, most of us aren't that fortunate and have to rely on virtual strangers. You can identify business to consign with by looking in the local telephone directory, by thinking about shops you frequent, or by visiting a mall/plaza/shopping area and scouting for potential businesses.
Small, locally owned businesses are easiest to start out with. Large corporations and chains generally use corporate buyers and are looking for inexpensive, mass-produced items. Unless you are prepared to compete or you have information that a larger company is accepting more specialized pieces, skip the large retailers.
Types of shops who will carry your items vary with your locale, but you can try clothing boutiques, spas, gyms/fitness centers, hair salons, medical offices (awareness or medic alert jewelry), etc. Let your imagination run wild! Any place that has a cash register and isn't too dirty (I'd probably skip auto repair shops!) is a candidate.
If possible, do a pre-visit and look around in the shop. What kind of jewelry will fit in with the current merchandise? Does the shop owner already have a plethora of beaded jewelry just like yours? Come up with another style, or skip that shop. Does the shop specialize in professional attire? Leave your spiked collars and heavy chains at home. Look at price points too....don't try to sell $100 items in a store that doesn't sell anything over $25.
I've got a list...I'm ready to make contact!
First rule when selling to retailers is not to just drop in and expect to be seen. You don't know their peak times, you don't know if the person who makes the decision is even in the shop or has the time to see you. My approach is to either call and make an appointment, or stop in and make an appointment for a later time. Leave a business card and try to get a contact name and phone number...even possibly set up an appointment for a later date that is convenient.
Second rule is that even if you have an appointment, don't expect to be the center of attention. Many times, shop owners will be the only person working and you need to take second place to any shoppers.
My appointment is set up...what do I bring and how do I bring it?
First, bring a smile and dress professionally and appropriate to the venue. Wear your own jewelry to show how great it looks on live model. Bring a limited number of items — I stick to 15 or less — in several styles, colors, and types of jewelry. Examples might be 2 necklaces, 5 bracelets, 5 pairs of earrings, 3 sets (earrings/bracelet or necklace). Use a velvet roll or trays to transport and show your wares. Ziplock baggies pulled out of your purse are not going to shout "professionalism"!
Items should be tagged but not priced. I tag my consignment pieces with a card that has my company name and contact information, and information about what the piece is made from.
Unless you've been asked to bring displays or can pack them discreetly, leave them at home for this first showing.
Also bring a list of your items with the wholesale price (the price YOU expect to receive) and stock numbers associated with each piece. I use a simple Excel spreadsheet to keep track of my consignments, which I print out periodically (or email) to my shop owners.
One last thing...bring a calculator for figuring retail pricing and a pen to mark tags.
I'm here at the shop...nervous as can be. What now?
Relax! This is the fun part. Follow the lead of your shop owner, but make sure you discuss the following items in addition to showing off your work!
- Consignment terms (i.e., what is the store's percent of the sale price). You have already established what you need as your wholesale price. Keep in mind that your wholesale can be slightly less than what you'd sell direct — you are not paying booth or advertising fees to have the item in the shop. Consignment fees vary, but be wary if the fee is a percent in addition to a "per item" charge, or if you are charged for merchant fees or other fees. Remember, this is totally negotiable...if the shop owner presents consignment terms that are unacceptable and won't budge, you are free to say "I'm sorry, I don't think this will work" and politely pack up and leave. Lots of other venues out there!
- Payment schedule. When and how will you be paid? A check in the mail once a month? Paid each time a piece sells?
- Restock schedule. Is there a time or day that it's best to come back and check on your stock — cleaning, re-merchandising, restocking, etc., Set up a follow up schedule, and then stick to it. Keeping in touch after the first contact is probably the most important part of making your consignment agreement successful.
- Contract with your terms and conditions. The shop owner may have a standard contract, or you may chose to use one of your own. Check with an attorney and/or the laws in your area, but generally if both parties are over the age of consent, have consideration (get something), sign and date it, it will protect you and the shop owner in case of misunderstanding, theft or other issue.
- Return policy. Find out what the store's policy is, and how you will be expected to follow it. If you want to establish your own guidelines (i.e., if it sells, YOU get paid, the store will absorb any returns and put the piece back in their inventory, or no returns period unless defective), now is the time to do so.
- Custom work policy. Let the store owner know if you will customize pieces or not, and have a method of contacting you if a customer wants custom work done. I like to talk to the customer directly, but all sales go through the store owner — he/she has established the contact and I want to give credit where credit is due!
Chat and be friendly, decide on which pieces will be left at the store and what the retail price will be. Mark your tags with the retail, and also note it on your spreadsheet. Leave a copy of the spreadsheet with the owner, along with more business cards to include when a piece is sold.
After the initial visit
Check back with your shop owner via personal visits, emails or phone calls periodically. I like to visit in person once a month, just to check on stock levels and clean any jewelry that needs a little polishing. Emails are great for keeping in touch with busy people, and retailers are some of the busiest! Keeping your name in your shop owner's mind will help your own business grow.
Have fun with consignments — I have established consignment agreements with single shops in various parts of town (makes them a little more "exclusive"), and have enjoyed working this way. I don't have to spend a lot of time on my consignments monthly, and the added exposure and sales are helping my jewelry business to grow!
